It was quite a feat to see Bitcoin took out all the key moving averages in one go as price rallied to 3845 earlier. Even though Bitcoin has broken above the descending channel , it could fall back down just as easily, which is why...

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... risk-averse traders should wait for the bulls to clear the 4000-resistance level before entering, as suggested in yesterday's post.

So what's the deal now?

For us to see more upside from Bitcoin , the bulls would need to hold its price above the green line at all cost. A drop below the green line would cloud the market with uncertainty again. At that point, Bitcoin could breakout either way so the green and red lines would serve as your compass.

On the bearish side of things, if the price breaches below the red line, then we can expect Bitcoin to test the lower regions again, probably the bottom of that descending channel .

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